The Reserve Bank of India (RBI), in its June policy meeting outcome on Friday, lowered its growth projections for the financial year 2026-27 (FY27) to 6.6% from 6.9% earlier amid the Middle East crisis, elevated crude oil prices, and disruptions to the Southwest monsoon.
In the year ended March 31, 2026, India’s GDP growth is expected to have grown 7.6%. The figures will be released by the government later in the evening.
At the same time, RBI Governor Sanjay Malhotra also raised inflation projections for the year to 5.1% from 4.6% earlier.
The underlying inflation pressures continue to remain benign at this juncture, said Malhotra. However, he added that generalisation of inflation through second-round effects on expectations and wages is a distinct possibility, warranting a close vigil. “The outlook also remains clouded by the subnormal south-west monsoon forecast and El Niño risks.”
More to come…